Discussion Paper Details

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Title: Communication Externalities in Cities

Author(s): Sylvie Charlot and Gilles Duranton

Publication Date: September 2003

Keyword(s): cities, communication externalities, human capital and R19 R29

Programme Area(s): International Trade and Regional Economics

Abstract: To identify communication externalities in French cities, we exploit a unique survey recording workplace communication of individual workers. Our hypothesis is that in larger and/or more educated cities, workers should communicate more. In turn, more communication should have a positive effect on individual wages. By estimating both an earnings and a communication equation, we find evidence of communication externalities. Being in a larger and more educated city makes workers communicate more and in turn this has a positive effects on wages. Only a small fraction of the overall effects of a more educated and larger city on wages percolates through this channel, however.

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Bibliographic Reference

Charlot, S and Duranton, G. 2003. 'Communication Externalities in Cities'. London, Centre for Economic Policy Research.